Often asked: What Are Other Current Assets On A Balance Sheet?

Current assets appear on a company’s balance sheet, one of the required financial statements that must be completed each year. Current assets would include cash, cash equivalents, accounts receivable, stock inventory, marketable securities, pre-paid liabilities, and other liquid assets.3

What is included in other assets on the balance sheet?

Examples of other current assets (OCA) include:

  • Advances paid to employees or suppliers.
  • A piece of property that is being readied for sale.
  • Restricted cash or investments.
  • Cash surrender value of life insurance policies.

What qualifies as other current assets?

Other current assets are the assets of the business that are not very common and significant like cash & cash equivalents, inventory, trade receivable, etc. and expect to be converted into cash within 12 months of the reporting date.

What are the 5 current assets?

There are five main kinds of current assets:

  • Cash and equivalents.
  • Short- and long-term investments.
  • Accounts receivable.
  • Inventories.
  • Prepaid expenses.

What is not an example of an other current asset?

Other current assets is a default classification of “current asset” general ledger accounts that does not include the following major current assets: Cash. Marketable securities. Accounts receivable.

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Is the difference between current assets and current liabilities?

The major difference in both terms is on the basis of nature. The current assets are those things that will provide us with benefits in the future by making the availability of cash in the business. but liabilities are those things, which the business has to pay in the future.

What are examples of current assets?

Examples of current assets include:

  • Cash and cash equivalents.
  • Accounts receivable.
  • Prepaid expenses.
  • Inventory.
  • Marketable securities.

Is Other current assets a quick asset?

Quick assets include cash on hand or current assets like accounts receivable that can be converted to cash with minimal or no discounting. Inventories and prepaid expenses are not quick assets because they can be difficult to convert to cash, and deep discounts are sometimes needed to do so.

What are current liabilities?

Current liabilities are a company’s short-term financial obligations that are due within one year or within a normal operating cycle. Examples of current liabilities include accounts payable, short-term debt, dividends, and notes payable as well as income taxes owed.

Which is not the current asset?

Noncurrent assets are a company’s long-term investments for which the full value will not be realized within the accounting year. Examples of noncurrent assets include investments, intellectual property, real estate, and equipment. Noncurrent assets appear on a company’s balance sheet.

How do you list current assets?

Current assets generally sit at the top of the balance sheet. Here, they are highlighted in green, and include receivables due to Exxon, along with cash and cash equivalents, accounts receivable, and inventories. Noncurrent assets are listed below current assets.

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Is capital a current asset?

No, net working capital is not a current asset. A current asset is any asset that will provide an economic value for or within one year. Net working capital refers to the difference between a company’s total current assets minus its total current liabilities.

How do I calculate current assets?

Current assets = Cash and Cash Equivalents + Accounts Receivable + Inventory + Marketable Securities.

Is Accounts Payable a current asset?

Accounts payable include short-term debt owed to suppliers. They appear as current liabilities on the balance sheet. Accounts payable are the opposite of accounts receivable, which are current assets that include money owed to the company.

What does an increase in non-current assets mean?

What is a Noncurrent Asset? A noncurrent asset is an asset that is not expected to be consumed within one year. If a company has a high proportion of noncurrent to current assets, this can be an indicator of poor liquidity, since a large amount of cash may be needed to support ongoing investments in noncash assets.

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